Forex Daily Recap – The Kiwi Plummets Drastically As RBNZ Alluded Of An Imminent Rate Cut Soon

NZD/USD

The Kiwi pair heavily plunged from 0.6916 level straight down to 0.6806 level after the Reserve Bank of New Zealand (RBNZ) announced its Rate Statement. There was a steady fall of 1.6 percent in NZD/USD within 5-10 minutes post the rate statement. RBNZ mentioned today that the bank is likely to cut rates in November this year and also hinted of an earlier rate cut even before November. Investors go unnerved on this unexpected dovish stance of the central bank on the country’s monetary policy.

USD/CAD

The Loonie jumped on the opening underpinned robust USD Index which measures the greenback against the six major currencies. US Dollar Index had soared from 96.265 level to  96.414 level during the morning session. The USD/CAD pair, however, fell back in the middle of higher crude prices. This price surge was a result of a second blackout happened in Venezuela and OPEC supply cuts. The tightening of US sanctions on certain Oil producing countries like Iran and peers also contributed to the increase in crude prices. Canada reported its trade deficit of C$4.25 billion for January. There was a 1.5 percent in the imports number weighed more due to massive imports of aircraft during the month. The Canadian Dollar kept plunging following the news but helped the loonie pair to elevate.

EUR/USD

The pair was seen to extend the previous day’s downward rally during the early trading hours amid uprising USD Index. After that, the EUR/USD pair went into consolidation mode for quite some time fluctuating between 1.1252 and 1.1259 levels. The pair couldn’t stay for long in positive and hence started plunging again. The pair showed minor dips during the day in response to certain Eurozone events possessing varying levels of volatility.

European Central Bank (ECB) President Mario Draghi repeated the same dovish stance which he had mentioned during his last speech. The Central banker added that the there remains risk appetite from global economic front.  Istituto Nazionale di statistica reported the March Consumer Confidence Index and Business Confidence Index during the day. Both the indexes were below the consensus estimates. However, the EUR/USD plunged heavily from 1.1283 reaching 1.1243 level later the day amid global economic slowdown fears.

GBP/USD

The cable pair grew stronger during the day ahead of the UK Parliamentary Vote on Brexit. The MPs will be voting on the alternatives to UK PM May’s deal Brexit scheduled at around 19:30 GMT.

Coming back to the GBP/USD movement recap for the day. After some initial sideways movement, the pair shifted gears and took up the upward rally touching fresh highs for the day of 1.3246 level. CBI Distributive Trades Survey reported as -18 points which were below the market expectation of 5 points. GBP/USD remained unaffected with this low volatile news. Later, the pair slipped from 1.3240 level landing near 1.3195 level after the release of the weak US Trade Balance reports for January and below consensus Crude Inventories numbers. After taking support at 1.3185 level, the GBP/USD pair was pushed drastically upwards heading to break the resistance level of 1.3246 level.